Coco Chanel launched her brand ‘Chanel’ in Paris, France, in 1909. Most recently, Chanel reported their revenue in 2021 was $15.6 billion.
Chanel became a household name for perfume. But Coco is believed to have been a pioneer in the over-the-shoulder purse we know today.
In the world of luxury handbags, few other names are as big as Chanel. This is the driving factor for the brand’s high demand and increasing cost.
Owning a Chanel handbag puts you in another sphere. But how much does a Chanel bag cost these days? Keep reading to find out.
How Much Does a Chanel Bag Cost?
Chanel has continued to increase the prices of their most popular styles over the past five years. In the summer of 2021, Chanel announced they would increase their prices further.
One of the most classic Chanel bags has risen in price by $7,650 since 1990. The Chanel Medium Classic Flap bag has continued to rise at 7% over the past 30 years.
The Classic Flap Bag started at $220 upon its introduction in 1955. You can buy that iconic bag for $8,800 today.
Luxury handbag prices are doubling the inflation rate, and they have been for decades. It’s normal to expect a price rise once or twice a year from major luxury brands like Chanel.
Other Current Chanel Bag Prices
The Chanel 19 Pouch with Handle is a tiny, lambskin wallet currently listed at $1,875. The slightly larger calfskin Mini Bucket with Chain boasts a $2,425 retail price.
The Chanel Business Affinity Bag is now out of stock on most resale sites. However, if you can find it, it’s listed for around $4,600. Chanel has its much larger Chanel 19 Shopping bag on their website for $5,800.
Cost to Create
It is challenging to pinpoint precisely how much a Chanel bag costs to create, and it varies depending on the bag. Based on other luxury handbag costs, it’s safe to say that it costs about 20 times less than what they sell them for.
Most Chanel bags are created from lambskin leather or caviar leather. You can buy lambskin leather online from Mood.com for as low as $31 a hide. One could only speculate how much discount there is for buying in bulk.
Chanel used to decorate their bags with 24k gold closures. However, after 2008, they began using gold-toned hardware.
When it comes down to the exact number to create a simple luxury handbag, it’s somewhere between $15 and $20.
While the price of Chanel bags makes them feel like a significant investment, they’ve proven to be a good one. The demand for these luxury handbags only increases with the price.
What doesn’t increase is the supply. Buyers are willing to pay significant prices because of how Chanel produces their product.
Only a certain number of handbags are made. Chanel also introduced a quota system in June 2022.
Buyers are now restricted to purchasing only two classics a year. This preserves the feeling of exclusivity.
Once they’re sold out, they become even more sought after. This feeling of exclusivity drives the price of Chanel’s handbags. Though, it doesn’t hurt that the bags are made of high-quality material and have superior craftsmanship.
Chanel takes their marketing a step further by offering seasonal handbags. Because of this, the prices of Chanel bags have also risen in the resale market.
Even throughout the pandemic, Chanel continued to increase prices. From May 2020 to November 2022, Chanel boosted their bag prices four times!
The demand always remains high. Therefore, the prices continue to rise.
The cost explanation is simple and closely tied to why Chanel bags are a good investment. They are a symbol.
Chanel has become such a popular name in luxury fashion that people want to be associated with their products. The high price and exclusivity make Chanel’s handbags a status symbol.
The rise of social media influencers has only caused an increase in demand and price. People want to be in this special club.
When you’re wearing a Chanel bag, you have influence and power. This status symbol shows that you can afford a handbag with a name that carries weight.
The allure that Chanel has achieved directly correlates to the cost of their product. However, the quality of a Chanel handbag isn’t in question either.
Most people who own Chanel handbags don’t have to worry about replacing them because they can afford them. But, it’s not a worry that anyone needs to have because Chanel introduced a warranty.
In 2021, Chanel came out with “Chanel et Moi.” All handbags and the wallet chain have a 5-year warranty.
Chanel’s willingness to back their prices and quality gives them more ability to raise their numbers. This draws in more investors!
The future continues to be bright for Chanel. Nothing could show more resilience and popularity of a brand than enduring a pandemic and coming out even more on top.
With the numbers they continue to achieve, investing in Chanel bags seems more secure than investing in the stock market. Chanel’s way of marketing and producing their bags in lower quantities keeps their demand at an all-time high.
There’s no sign of Chanel’s prices dropping any time soon. Every year, we’ll ask, “How much does a Chanel bag cost?”
The answer will most assuredly be, “More than before.” For more information on Chanel’s history, check out this Chanel blog post.